One of New Yorkers’ biggest challenges is living harmoniously in multi-unit buildings. While any issue with a neighbor can be stressful and complex, the nature of the shared walls, floors, ceilings, and common spaces means that what happens in one residence can directly impact another. Noise is a common area of dispute. Less common but more expensive is water damage.
In a New York City co-op or condominium, several steps and responsibilities come into play if a resident’s negligence or actions cause water damage to other units. While the building’s bylaws will outline steps for resolving property damage issues, here’s a general breakdown of how to address water damage.
Identifying the source and responsibility
First, it’s essential to identify where the water damage is coming from and who is responsible. If the damage is due to a resident’s negligence, such as leaving a faucet running or not fixing a leaking appliance, that resident is usually held responsible for the damage caused to other units. While governing documents always need to be reviewed, the general rule is residents are responsible for exposed pipes and the buildings are responsible for the pipes behind the walls and ceilings.
The board’s role and responsibilities
The board is responsible for maintaining the building and ensuring it is habitable. This includes addressing water damage issues promptly. Even if the damage is caused by a resident, the board must take action to repair it and ensure the affected units are livable. The board can then seek reimbursement from the responsible resident.
Insurance and coverage
Residents in a co-op are typically required to have insurance that covers their unit and any damage they might cause to others. If a resident’s negligence leads to water damage, their insurance policy may cover the repair costs. The affected residents should also contact their own insurance companies to report the damage and start the claims process.
Legal actions and claims
If the responsible resident does not have insurance or refuses to pay for the damages, the affected residents or the co-op board can take legal action, depending on who suffered the damages. This might involve suing the responsible resident in small claims court if the damages are under $10,000 or in a higher court for larger claims.
Preventive measures
Building boards often have rules and regulations in place to prevent such issues. These might include regular inspections of plumbing and appliances, having repairs performed by licensed and insured contractors, requiring residents to maintain their units properly, and ensuring that all residents have adequate insurance coverage.
What if it’s not the negligence?
Suppose a pipe bursts inside the wall, and it’s not due to a resident’s negligence. In that case, while the the co-op board is responsible to make repairs and restore the basic “box” of the apartment, it may be liable to shareholders for additional damages if it was negligent in the maintenance of the building. The mere fact that a leak occurred is not proof that the board was negligent. The board must address the damage promptly to maintain the building’s habitability. The co-op’s insurance typically covers the repair costs for common areas, structural elements and those items in the apartment which the cooperative is obligated to repair. Affected residents should also contact their insurance companies to cover personal property damage.